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Income taxes
 3 Months Ended
Mar. 31, 2024
Income Tax Disclosure [Abstract]  
Income taxes Income taxes
The Company determines its tax provision for interim periods using an estimate of its annual effective tax rate adjusted for discrete items, if any, that are taken into account in the relevant period. Each quarter, the Company updates its estimate of the annual effective tax rate, and if its estimated tax rate changes, the Company makes a cumulative adjustment.

The Company’s effective tax rate (“ETR”) was 25.2% for the three months ended March 31, 2024, up from 23.4% for the three months ended March 31, 2023. The increase in the Company’s ETR is primarily driven by lower tax deductions related to stock-based compensation in the three months ended March 31, 2024 compared to the three months ended March 31, 2023.

The following table summarizes activities related to the Company’s unrecognized tax benefits for uncertain tax positions for the three months ended March 31, 2024:     
Three months ended March 31, 2024
Opening balance at January 1$19,236 
Decrease related to settlements with taxing authorities(342)
Effect of exchange rate changes(42)
Closing balance at March 31$18,852 

As of December 31, 2023 and March 31, 2024, the Company had unrecognized tax benefits amounting to $19,236 and $18,852, respectively, which, if recognized, would impact the Company’s ETR.

As of December 31, 2023 and March 31, 2024, the Company had accrued $3,312 and $3,209, respectively, in interest and $499 and $501, respectively, for penalties relating to unrecognized tax benefits.
During the year ended December 31, 2023 and the three months ended March 31, 2024, the Company recognized approximately $220 and $(87), respectively, in interest related to income taxes.